Intel (INTC) Stock: Top Analyst Upgrades to Overweight on Server CPU Demand

TLDR

• KeyBanc upgraded Intel and AMD to Overweight on January 13, 2026, citing strong server CPU demand driven by AI infrastructure needs.
• Intel’s server CPU supply is nearly sold out for the year, with the company considering a 10-15% price increase.
• Intel stock jumped 7.3% to $47.29, hitting a new 52-week high after the upgrade with a $60 price target.
• AMD received a $270 price target with projections for at least 50% server CPU revenue growth and $14-15 billion in AI GPU revenue.
• Intel’s 18A manufacturing process shows yields over 60%, potentially positioning it as the number two foundry behind TSMC.

Intel stock surged 7.3% to $47.29 on Tuesday, hitting a fresh 52-week high after KeyBanc upgraded the chipmaker to Overweight. The analyst firm’s bullish call came with a $60 price target, one of the highest on Wall Street.

Intel Corporation, INTC

KeyBanc analyst John Vinh cited nearly sold-out server CPU inventory for 2026 as a primary driver. The boom in artificial intelligence infrastructure has created massive demand. Intel is exploring a 10-15% average selling price increase to capitalize on the tight supply.

The upgrade came as part of a broader positive outlook on CPU makers. AMD also received an Overweight rating from KeyBanc on the same day. Both companies appear positioned to benefit from the AI infrastructure buildout happening across data centers.

Intel’s server CPU business represents a critical revenue stream. The chips power the servers that run AI workloads and cloud computing operations. With supply constraints limiting availability, Intel holds pricing power it hasn’t seen in years.

The stock closed at $44.06 on December 20, 2025. The average analyst price target of $37.52 represented a 14.84% downside at that time. KeyBanc’s new $60 target sits well above that consensus.

Institutional ownership data shows 3,082 funds holding Intel positions. This marks an increase of 178 funds, or 6.13%, in the last quarter. Total institutional shares decreased slightly by 0.98% to 3.24 billion shares.

Manufacturing Progress Opens New Revenue Opportunities

Vinh highlighted progress in Intel’s foundry business, which manufactures chips for other companies. The company’s 18A manufacturing process now shows yields exceeding 60%. This level of production efficiency could position Intel as the number two foundry globally, ahead of Samsung but behind TSMC.

Apple appears set to become an Intel foundry customer. The tech giant plans to use Intel’s facilities for low-end MacBook and iPad processors starting in 2027. Discussions are also underway for Intel’s 14A process to manufacture low-end iPhone A-series chips in 2029.

The foundry business represents a strategic shift for Intel. For decades, the company primarily manufactured its own chips. Opening its facilities to outside customers creates a new revenue stream and better utilizes expensive fabrication plants.

Put/call ratio data shows a 0.70 reading for Intel options. This indicates traders are betting on further upside. More call options than put options suggests bullish sentiment in the derivatives market.

Major shareholders include Vanguard Total Stock Market Index Fund with 126.3 million shares, representing 2.53% ownership. Vanguard 500 Index Fund holds 123.8 million shares at 2.48%. Geode Capital Management owns 98.8 million shares, making up 1.98% of the company.

AMD Shares Join the Rally

AMD stock rose 6.4% to $220.97 on the same upgrade. KeyBanc set a $270 price target for the company. Vinh projects AMD’s server CPU revenue will grow at least 50% this year, with similar price increases to Intel.

AMD’s MI355 and MI455 graphics processing units are expected to generate $14-15 billion in annual AI revenue. The analyst sees 200,000 MI355 GPUs shipping in the first half of 2026. The MI455 will ramp up in the second half, with 290,000-300,000 units targeted for AMD’s Helios rack-scale solution.

Projected annual revenue for Intel stands at $100.9 billion, an increase of 88.82%. Projected annual non-GAAP earnings per share is $3.56. The revenue jump reflects both organic growth and the company’s diversification into foundry services.

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